Key facts
- Energy Secretary Doug Burgum stated that state policies and taxes, not geopolitical events, are the main cause of high gas prices.
- Burgum specifically blamed California's energy policies and taxes for its high gas prices, calling them "self-inflicted."
- Gas prices have increased over 30% nationally in the past year, reaching an average of over $4 per gallon.
- California's average gas price is $5.75 per gallon.
- President Trump announced an imminent peace deal with Iran that would immediately reopen the Strait of Hormuz.
- The Strait of Hormuz has been effectively closed due to conflict, impacting global energy supplies.
Energy Secretary Doug Burgum asserted on Friday that state policies and taxes, rather than geopolitical events like the closure of the Strait of Hormuz, are the primary drivers of high gasoline prices across the United States. Burgum specifically pointed to California, stating its high fuel costs are "self-inflicted" due to policies enacted by Governor Gavin Newsom and the state legislature.
He argued that states' pushes toward renewable energy sources contribute to elevated prices, a factor he believes is independent of international conflicts. The U.S. Energy Information Administration notes that California's high gasoline taxes, stringent clean energy requirements, and limited refinery capacity contribute to its elevated fuel costs.
Gas prices have surged since the U.S. and Israel launched a joint attack on Iran on February 28, leading to the effective closure of the Strait of Hormuz and straining global energy supplies. The national average gas price has risen to over $4 per gallon, a more than 30% increase from a year ago. In California, the average price stands at $5.75 per gallon, up from $4.65 a year prior.
However, oil prices saw a decline on Thursday following President Trump's announcement of an impending deal with Iran. Energy Secretary Chris Wright had previously assured that traffic through the Strait of Hormuz was "rising very meaningfully." President Trump also stated that the U.S. military had secretly moved 100 million barrels of crude oil through the waterway, asserting U.S. control over the strait. Trump announced on Saturday that a peace deal framework with Iran is nearing finalization, with the strait expected to reopen immediately if signed on Sunday.